We were instructed to advise on values of a residential development scheme affected by flood waters. This caused a diminution in values, which formed part of an insurance claim.
The scheme comprised 30 new build dwellings which had been completed prior to the floods.
The result of the floods was that a number of the houses were physically flooded and the marketing of the development was delayed until remedial works had been completed. The issues revolved around the diminution in value of the properties directly resulting from the flood. These figures had to be extrapolated from the general changes in market values which were occurring at that time.
We also considered it appropriate to include in the calculations a percentage reduction in values to reflect the loss of the marketing period when flood damage assessments and subsequent repairs were being carried out.
The valuation exercise involved consideration of market evidence supported by property sales data to provide a logical and quantifiable opinion.
The flooding of property is again in the news with catastrophic flooding of the Cumbrian coast around Cockermouth. The RICS have recently published a guide to flooding which covers such issues as preparing for flooding, measures you should undertake during a flooding and post flood recovery.
A Chartered Surveyor can advise on all property issues relating to flooding.